Basmati exporters sound the alarm on runaway shipping charges

 

Trade & Exports · West Asia Crisis

War-risk surcharges reaching 60–70% of cargo value are pushing Indian rice traders to the brink — and smaller exporters are bearing the heaviest toll.

AgricultureShippingPolicyApril 27, 2026 · By PTI

$6,000Max surcharge per container

70%Charges as % of cargo value

$800Minimum war-risk surcharge

The Basmati Rice Farmers and Exporters Development Forum has issued an urgent call to New Delhi to rein in what it describes as arbitrary and opaque shipping charges that have rendered exports commercially unviable for a growing number of traders across India.

The forum says war-risk surcharges which have ranged from $800 to $6,000 per container  are frequently imposed without advance notice, and in several cases revised after cargo has already set sail. When stacked together, cumulative charges have consumed 60 to 70 per cent of the cargo's declared value, leaving exporters with little or nothing to show for a shipment.

"Exporters are effectively being asked to absorb open-ended financial liability for circumstances entirely beyond their control."

— Priyanka Mittal, Chairperson, BRFEDF

How the West Asia crisis is disrupting supply chains

Shipping lines, responding to the broader conflict in West Asia, have been unilaterally diverting cargo to ports such as Jebel Ali, Sohar, and Salalah. Containers are being held at transshipment hubs without any clarity on onward movement, and in some instances are being returned to their port of origin. In every case, exporters who had no say in these decisions are left to foot the bill.

Smaller exporters hit hardest. A sharp imbalance in bargaining power between large global shipping carriers and individual Indian traders has left many with virtually no recourse. Some exporters have indicated the mounting charges are forcing them to consider abandoning cargo altogether — a stark measure that underscores how dire conditions have become.

What the forum is demanding

• Charges must be strictly linked to services actually rendered  no blanket or speculative levies
• Shipping lines should release containers without tying returns to disputed fees
• The government must establish clear regulatory guidelines for cargo handling during geopolitical disruptions
• An inter-ministerial group should be convened to address the structural vulnerabilities these events have exposed

Government response — and the gap that remains

India's Directorate General of Shipping has formally acknowledged exporter grievances and assigned tracking numbers for submission to an inter-ministerial group  a step the forum welcomes but views as insufficient. Conditions on the ground, the forum says, remain "extremely challenging," and bureaucratic acknowledgement has yet to translate into any relief for traders managing cascading losses.

"If left unaddressed, such practices risk setting a precedent that could undermine confidence in India's maritime trade framework."

— Priyanka Mittal, Chairperson, BRFEDF

The stakes are significant. Basmati rice is one of India's most valuable agricultural exports, closely tied to markets across West Asia, Europe, and North America. A prolonged erosion of exporter confidence  particularly among small and medium traders  could have lasting consequences for India's reputation as a reliable supplier and for the rural farming communities that depend on a healthy export pipeline.